Ship recycling ecosystem strengthening: FSDF support, HKC compliance, shipbreaking credit note scheme (MIV 2030)
India has expanded financial and policy support for Alang ship-recycling yards through the Ferrous Scrap Development Fund, Hong Kong Convention compliance, and a shipbreaking credit note scheme.
- The Ferrous Scrap Development Fund is being used to modernize Indian ship-recycling yards and support health infrastructure at Alang, Gujarat.
- HKC compliance is the regulatory basis for marketing Indian ship-recycling yards as safe and environmentally responsible destinations for global shipping fleets.
- The Shipbreaking Credit Note Scheme is designed to link ship recycling at compliant Indian yards with incentives for domestic shipbuilding.
India has strengthened its ship-recycling ecosystem through financial support, compliance upgrades, and a market incentive for shipbreaking at certified yards. The policy logic is to make Alang, Gujarat, safer and more competitive while linking ship recycling with domestic shipbuilding.
What happened now
The Ministry of Ports, Shipping and Waterways has said that the Ferrous Scrap Development Fund (FSDF) has released financial assistance of ₹ 53.5 crore to 109 Indian ship recycling yards for modernization support. The ministry has also said that FSDF support includes ₹ 2.49 crore per annum for development and operation of a multispecialty hospital at Alang, Gujarat, and ₹ 12 lakh per annum for maintenance and operation of another primary hospital at Alang, Gujarat.
UPSC can frame the issue around how India can combine environmental compliance, worker safety, industrial modernization, and shipbuilding capacity through a circular-economy model at Alang.
